DELIMA ENTERPRISE CASE STUDY-1 MAF 680

TEAM MEMBERS: NOR AZINDA HARUN NORLAILA MOHD HANAPI FARHAINI ISMAIL DALILA KAMARUDDIN HASLINA ABDUL KARIM NURUL AIN ZULKIFLI

- 2008537711 - 2008250586 - 2008250494 - 2008250484 - 2008250542 - 2008250592

Organization Chart Delima Enterprise

En. Zayed CEO Pn. Hashimah COO

En. Salam HR & Admin Manager

Pn. Balqis Operation Manager

Cik Amy Finance Executive

(Vacant) Project Manager

Project Team (Contract basis)

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Part 1


PROBLEM SOLUTION

Timesheets are manually prepared by employees

Theyre record time in & out by themselves Use traditional method Not accurate Wrongly calculate & paid over Punch card Access card Time clock machine @ thumbprint Supervise time in & out of the employees. CCTV

Example

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Part 2


PROBLEM SOLUTION

Document are not properly pre-numbered, recorded & documented

Document (invoice, PO,DO or etc) should be properly pre Sales invoice are manually produces numbered. & not pre-numbered. Use latest edition of standard Monthly statement of account not financial software periodically prepare only prepare (MYOB,USB,SAP or etc) & sent to customer when payment Periodically prepare & update had been long outstanding. control accounts.


PROBLEM SOLUTION

Lack of control
Documents not pre-number & missing. Assets not recorded No Supervision Documents serially numbered & kept properly & allow 5S system Assets properly recorded & kept in a locked room. Supervision done in regular and continuing basis Management should review the adequacy of internal control on regular basis.

EXAMPLE

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Part 3


PROBLEM SOLUTION

Lack of authorization of business transaction

No SOP all decisions were made & authorized by either En Zayed or Pn Hashimah Personal vehicle expenses were charged to company. Withdrawal of company money made without proper documentation. Decision and authorization by the directors on its own without proper documentation. All decisions should follow SOP. Expenses should be authorized by at least two person. Personal expenses cant be charged as company expenses. Segregation of duties between person who approved & stamping the documents. Should be separated to general and specific authorization.


PROBLEM SOLUTION

Segregation Of duties
En Zayed does not exercise his duties properly as to segregate management duties equally among the employees of the company that he may thinks fits to perform such duties. En Zayed should segregate Cik Amys workloads to other personnel according to the relevant job description. Example: Account Payable and Receivables should be assigned to different personnel.

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Part 4


PROBLEM SOLUTION

Appointment of auditor
Directors not practice proper procedure to appoint auditor. Sec. 172(1)-appoint the auditor at Annual General Meeting

Removal of auditor
Removal of auditor before the expiration of his term of office. Under Section 172(4),(5),(6) CA 1965, Only the s/holder can remove the auditor before the expiration of his terms Must have ordinary resolution at general meeting with special notice of 28 days given to auditor


PROBLEM SOLUTION

Auditors duties and responsibilities

En. Zayed tried to negotiate auditor to make unqualify report

Sec 174(2) express opinion in report Sec 174(3)- report particulars of deficiency, failure and shortcoming

Suggested Organization Chart Delima Enterprise

En. Zayed CEO Pn. Hashimah COO

En. Salam HR & Admin Manager (Vacant) Admin Executive

Pn. Balqis Operation Manager

(Vacant) Accounts & Finance Manager

(Vacant) Project Manager

Cik Amy Finance Executive

Project Team (Contract basis)

CONCLUSIONS
The Mission, Vision and Objective of the Company must be clearly stated.
Informed to employees so that they know the Companys goal. Delima should implement standard operating procedure (SOP). Delima should improve their internal control by provide the segregations of duties to ensure the management works efficiently and effectively. It also may avoid mishandling and reduce the mistake as well. As a Director, three (3) elements of Fiduciary duties to be comply :i) Duty of loyalty ii) Duty of Care iii) Duty of Disclosure